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Austin, Texas-headquartered electric vehicles (EV) giant Tesla, Inc. (TSLA) is preparing to report earnings. Valued at $631.08 billion by market cap, the automotive heavyweight is expected to announce its fiscal Q2 earnings for 2024 on Wednesday, July 17.
Ahead of the event, analysts expect Tesla to report a profit of $0.47 per share, down 39.7% from $0.78 per share in the year-ago quarter. In the last four quarters, the company has missed Wall Street’s bottom-line estimates in two and beat or matched in the other two. Tesla's performance in the last quarter, which led to a miss in earnings and revenue estimates, was the significant impact of ongoing price cuts.
For fiscal 2024, analysts expect TSLA to report EPS of $1.86, down 28.5% from $2.60 in fiscal 2023.
TSLA stock is down 20.4% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 14.5% gain. The stock has also underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 2.1% returns over the same time frame.
According to J.D. Power's 2024 U.S. Initial Quality Study, Tesla lost its lead in new all-electric vehicle quality to legacy automakers. On May 22, Tesla shares fell over 3% after the European Automobile Manufacturers’ Association reported a 2.3% drop in Tesla's April Eurozone registrations, hitting a 15-month low of 13,951 vehicles.
However, the stock surged over 12% after Tesla announced its Q1 results, revealing plans to accelerate the launch of less-expensive EVs potentially this year.
The consensus opinion on Tesla stock is cautious, with an overall “Hold” rating. Out of 33 analysts covering the stock, 9 advise a “Strong Buy” rating, 2 suggest a “Moderate Buy” rating, 15 recommend a “Hold,” and the remaining seven analysts suggest a “Strong sell” rating. This configuration is slightly more bullish than three months ago when TSLA had 5 “Strong Buy” ratings. The average analyst price target for Tesla is $177.81, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
